learned a lot from you and thank you very much and want to thank >> gregg: fox news alert. brand-new videotape of a volcanic eruption out of iceland. you can see the ash billowing over seven miles in the air. this as president obama announces that the eruption and the risks posed by the smoke and the ash will keep him from flying to poland for the funeral of that country's president who died in a plane crash last week. welcome to america's news headquarters. i'm gregg jarrett. >> the eruption choking off air travel and they suspended medicalvakations of soldiers wounded. >> on a sip cal saturday there are about 22,000 flights across europe and so far 16,000 flights have been cancelled or delayed

worldwide. more than a dozen nations have grounded flights to affected areas. laura ingle has more from our newsroom. >> reporter: as you know, if you have a flight on british airways heading out of the u.k. they have posted news all flights to and from the united kingdom will be cancelled. check out this image released by nasa we can show you. massive cloud of ash that is hovering over most of europe is so big, you can see it from space. this cloud that is hugging huge portions of europe have closed large sections of airspace creation fear that the particles of the ash cloud could endanger passengers by causing aircraft engines to plug up and fail. officials say the amount of ash and the big heavy plume is increasing which hit 21 countries with delays and groundings. those officials in iceland say it will persist for at least 24

hours or more which is also put an enormous strain on air freight busy. ups and fed ex reporting big problems with scheduled cargo flights. cancelled flights, lack of hotel rooms and dwindling of cash, it is a nightmare for those that are dealing with the nightmare. right now there are over two million passengers that have been affected by this volcanic eruption, and it's been impossible to predict when booking flights. it's been a big problem. i was in the office yesterday, and i guess there were cancellations. >> i don't think there will be a flight today. >> many are turning to rail service, but that, of course, doesn't help those that are stuck trying to make a cross atlantic trip and there is a health threat. europeans shouldn't go outdoors if ash starts to settle. they are telling people with problems with lung problems to

stay indoors. gregg? >> gregg: thanks very much. and hits keep coming for toyota. a voluntary recall of minivans. the company says a spare tire may come loose and fall on to the road creating a dangerous situation for other drivers. this recall applies to all minivans bought between 1998 and 2010. if you own one of those vehicles bring it to a dealer for inspection. in the past few months, toyota has recalled over 8 million vehicles worldwide. >> the crew of the space shuttle had s heading home to earth closing it's hatches and undocking from the international space station. during the mission astronauts did three spacewalks including one to install a new ammonia tank. they are set to return to earth monday morning, depending on the weather. >> gregg: former new york congressman eric massa saying

someone forged a $40,000 check to his chief of staff. federal campaign records now show that the check was written to joe lacalto before massa resigned suddenly last month. massa is saying that it was based on misrepresentations to campaign officials. he is among several staffers accusing the former congressman of sexual harassment. wall street powerhouse in legal hot water, sec announcing charges against goldman sachs. they made huge profits by selling mortgage investments they knew would fail. as the president and democrats are making a big push to overhaul the financial system. molly henneberg is live in the d.c. bureau. hello. this is one regulatory giant facing off a huge banking giant. what can you tell us about the accusations? >> molly: the sec is accusing

the world's most powerful bank, goldman sachs with fraud. goldman says it is going to fight the charges. it didn't disclose a conflict of interest that bought subprime mortgage securities a few years ago. a hedge fund manager putting together the securities was betting the product would fail and made a profit. financial advisers say it may be hard to get their reputation back if this is true. >> they are being accused of this. we don't know if it actually happened. if they did, they broke the most important ethical situation in the market and that is full and fair disclosure and not trading against your client. >> molly: how about if it was for investors? they say two european banks bought the securities lost nearly one billion dollars. what is this going to mean for the financial reform that is

making its way on capitol hill? >> molly: there is still disagreement in how much government should be involved in regulating the wall street. here is more. >> my hope that democrats and republicans can find common ground and move forward together, but this is certain -- one way or another we will move forward. this issue is too important. the cost of an inaction is too great. we will hold wall street accountable. >> molly: the president wants to sign the legislation this year. they came to some sort of agreement on part of bill. what was it. >> republicans didn't like setting up a $50 billion bailout reserve fund. they said it on would lead to more bailouts. they told senate democrats to drop the provision. the top gop senator mitch mcconnell said, quote, i appreciate the obama's recognition of the need to

steadily improve this bill. we hope we can work with them to close the loopholes and --. thank you. this is something we'll be watching all this week. molly, thanks. >> gregg: the government is now searching for new ways to close the widening budget deficit and enormous federal debt. one idea getting attention is a value added tax. essentially its national sales tax known as the vax. but can americans absorb another new tax? joining us is economist john -- critics say it would hurt the middle-class and more importantly, they claim it would deter consumer spending that drives economic growth. thus, engaging what could be then a double dip recession. is that one of the big concerns over a vax? >> we don't want more taxes.

>> if we were starting from scratch. that might make a lot of sense because it's a very efficient tax. it doesn't discourage savings and investment have investment. but to add a value added tax which is hidden sales tax to all the other taxes we have. that would basically make us another european country. i grew up partly in europe. i can remember in the 1970s, vat rates were 10%. now in many counties they are 16 to 20%. it constantly has a ratchet effect, it always goes up. >> gregg: it starts low and everybody says, okay, that is not so bad, but year after year, it rises. and the trouble is government is incredibly dependent on it as a source of revenue to spend more and more money year after year. it's like living a crack addict crack. why would the es seemed former fed chairman, paul volcker be

advocating this? >> i think paul volcker and ben bernanke thrown tlu up their hands and say we're never going to tee see a president to reduce spending. we have to balance our budgets. we need new taxes. i think that is surrendering to the issue because i think the american people are going to fight this tooth and nail. i also believe that frankly, businesses, if they see the prospects of a vat. they are going to hold back on hiring and putting out new products. the uncertainty that, i think, is making this economic recovery so slow and so tepid, it will only continue. >> gregg: the prospect of a vat may discourage economic growth at this point. we're so on precipice, still. let me switch to something else. i couldn't help but notice your newspaper, "wall street journal"

editorial page and the president's economic adviser larry sommers. editorial page argues if we continue to pay people for not working, hey, they're not going to work. it sounds pretty good but sommers makes a counter argument. expending unemployment benefits actually increases consumer spending thereby contributing to jobs. does he have a point? >> well, yes, but where does the intermediate money to pay the benefits come from? it comes from the government printing press. we're spending 43 cents out of every dollar and financing it with debt. that is going to lead to long term inflation. so i think the argument falls. in addition, we have economic study after economic study which mr. sommers has recognized that, of course, unemployment benefits are low enough they may seek

work. they also, of course, encourages them to continue to seek work perhaps for cash so they can combine that with unemployment benefits and get by. the real solution here is a full-time real job. you're not seeing enough of owes the if you had up the people that are floyd and people that don't work as many hours that they want we have 16-17% unemployment rate. if you extend them too far it becomes a way of life. >> gregg: you probably heard the financial reform bill, as i read the bill, federal regulators will have the latitude and discretion to engage in unlimited taxpayer bailouts of financial institutions. the president denies that, geithner denies that. who is telling the truth?

>> i haven't looked it it in detail, but the federal government is going to take over in companies they think they are failing, financial institutions and rearrange them and inject money. that is taxpayer bailout. the problem is, the government will also decide who gets paid off. remember, we saw in general motors what happens when the government decides who the favored creditors are. and regular bond holders they only got 20 cents on the dollar. so i'm not concerned about the size of the bailout. i'm concerned about the government playing winners and losers and deciding some people deserve more money than others. >> gregg: final subject, goldman sachs. if it's true that goldman sachs sold to their clients a mortgage investment bond that was secretly intended to fail and

that was never disclosed to those clients -- that strikes me as fraud, doesn't it? >> right. we have to have some question as how far up the chain of command would on noen have known about that. this is another blow to goldman sachs that is secretly involved in government bailouts. it seems everybody got hit, everybody had to take an enormous loss except for goldman sachs. this only adds fuel to the fire that goldman sachs had the too much influence on the federal government. >> gregg: sec filed their lawsuits on friday. watch what happens on monday morning, you'll see the beginning of hundreds upon hundreds of lawsuits by individual investors suing goldman sachs for fraud. we'll wait and see how that goes. always good to see you. a battled over neat for a seat on the appeals court.

breaking out on non-partisan lines over the nomination of liu. even a bigger battle the one to replace john paul stevens. chair oh line shively has more from washington. >> if the committee's debate over an appellate court judge is any indication, the supreme court hearings could get feisty. liu is a berkeley professor who is obama's choice for the court. republicans blasted him on him and saying he was a activist judge. they took issue that liu gave in 2006 during alito's confirmation hearing. he said the judge's record and visions where police may shoot and unarmed boy to stop him from running away from stolen purse

on -- black men may be sentenced to death by an all white jury. >> would you acknowledge that temperate language. i see it as vicious and racially charged. >> reporter: democrats rushed to his defense praising his record. >> i cannot in my time on in this committee quite so young that has done so much. i have great respect for that. >> the senate judiciary committee has to schedule a vote on him before the vote goes to the senate floor. >> gregg: a convicted sex offender john albert gardner pleading guilty to raping and killing two girls. he raped and strangled chelsea king and pleading kidnapping amber dubois.

take a listen. >> the charges here with the crime that on or about february 13th, 2009, you did unlawfully murderer chelsea. what is your plea? >> part of a plea deal, he admitted trying to rape a female jogger last year in san diego. she managed to escape. a minnesota town is divided over a fund-raiser for a convicted sex offender. stan bar was found guilty of criminal sexual conduct involving a child under the age of 13. barre says he did not get a fair trial. he and his supporters are trying to hold an event to raise money for an appeal. protestors came out to stop it. >> i trust him with my kids. he's just a wonderful human being. >> i believe in the justice system. he has been convicted.

>> get it over with and let's move on with our lives. >> bar's sentencing is set for may 17th. they say they will do all they can to overturn his conviction. >> gregg: an end of an era for action hero turned governor. what is coming up, tight california contest coming up. >> meet malcolm. what he sold on e-bay to help his pai for his life saving heart surgery. that is when we come back. ... your presentation didn't. so here's your moment of truth. which 3g network do you trust to email the file, get it printed, and have it waiting upstairs ? when you want your 3g network to work, you want verizon. visit verizon to see how our smartphones can help put your business on the map, and buy one blackberry curve for $29.99

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here is a look at some of the headlines. space shuttle is heading back to earth. astronauts conducting three

spacewalks and did repair work on their mission. discovery is set to land on monday. >> officials in europe warning of an unprecedented bottleneck. volcanic ash closing down airports and closing down airports all across europe. >> and presented evidence showing contacts between five detained americans and an al-qaeda leader. five men from virginia are accused of planning terror attacks in the country of pakistan. >> gregg: california democratic state convention underway right now in the city of angels, los angeles. fireworks are over the race for the next governor and the front runners are the attorney general currently and former democratic governor jerry brown versus e-bay ceo meg whitman. in a state where voter

registration does favor the democrats and in a race that would pit a seasoned political hand, jerry brown against a newcomer. polls show them neck and neck. casey stegall is live in los angeles. >> gregg, a long list of prominent politicians gathering at this convention over the weekend. the goal is to energize california democrats about the upcoming primary and general election in november. this all boils down to just what you were talking about, one race in particular. that, of course, is the one for government can sd the contenders are all here. the likely democratic candidate is the current attorney general of california, jerry brown, certainly has name recognition with the voters. brown already served as governor once before following ronald reagan's. he served as california's secretary of state and the mayor of oakland near san francisco. the gop is doing well in one poll. meg whitman is leading with 44%

of those surveyed opposed to brown's 41%. while she isn't a staple of california poll fix, she is the former ceo of e-bay and has spent more than $40 million of her own money for the campaign. it appears to be working. >> so i think you're going to see a person with a huge amount of money and the ability to run a big corporation as well as somebody who has been in a public arena with a lot of accomplishments. >> reporter: jerry brown is widely recognized. he has kept a fairly low profile since announcing his bid for governor. he is getting competition from the left. peter sherman has announced his candidacy, but that campaign has yet to pick up any real steam. >> gregg: i think jerry brown has held more government jobs in california than anybody. secretary of state and then he

was mayor of oakland and now the attorney general for the state of california and again running for governor and dad was governor back in the '60s. who else is attending this convention? >> though the governors' race, nancy pelosi gave a talk. senator barbara boxer and mayor of lack. a number of prominent politicians are here. again, these primaries are going to be coming up in june. the goal is to get everyone energized and some of those big headliners are here to do just that. >> gregg: casey stegall live in los angeles, thanks so much. they like their politics. listen to this one. there is a young georgia boy. he has a potentially deadly heart condition. he decided to turn to e-bay to help pay for his operation. malcolm poyer suffers from a thickening of the vessels around

the heart. he was worried about the cost. he came up with this idea -- sell stories of a short story he wrote and he sold them on the e-bay. >> to help with my medical billings. >> it's really helpful for my family. we didn't have to worry about that piece of the puzzle. >> he sold nearly 1300 copies of the story making over $12,000 which covered the out-of-pocket costs and he made a swift recovery from the surgery. >> gregg: that is a great story. i wish we would get more stories like that. good for him. nature's fury in iceland, but the fallout is now being felt worldwide. the effects this is having on travel here on the united states

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>> gregg: time for top of the news. two bombers disguised in burkas killing 41 people in pakistan attacking a united nations food distribution center. u.n. will suspend refugee aid

programs in the "wall street journal". >> seven astronauts completed upgrades on the station. three flights remain before the shuttle program ends. >> and president obama cancelling his trip to russia. volcanic ash over europe has made travel conditions too hazardous. >> it's kind of sad. >> it's too bad. >> volcanic eruption, it's being called the worst travel disruption the world has ever seen. volcanic ash spewing massive plumes that pose a threat to the jet engines. as a result thousands of travelers are stranded. it's not clear when travel restrictions will be lifted. >> so we came out here to get

there and checked online. we can't go anywhere. >> we're stuck here for the time being. >> we're waiting to go home. >> alex rossi from sky news from brussels. >> at the airport here, this picture is replicated across europe. many airports, all the planes are grounded as a result of the volcanic ash cloud. problem passengers face this situation is likely to go for some time. we're told by scientists the next four or five days the cloud is likely to budge. we know that it spread across finland and toward the edge of russia. it's gone across the whole of europe heading to the east.

worrying thing as well is what we're being told by the italian aviation authorities. they said they had to close their airspace in the north of the country. there is not much sign it's going to get any better. to give you an idea of the problem. 16,000 flights have been cancelled so far today. normally you would have about 28,000 flights to europe. you can see the aviation industry is losing a huge amount of money as a result of this. but the effect on businesses is also going to be felt. this, of course, is the end of the easter break, many people trying to get back to their work to jobs and businesses and, of course, unable to do so for the foreseeable future. >> gregg: that was alex rossi. >> you go on vacation and you get stuck in a place like new york and you hadn't planned on the budget. what a headache.

>> gregg: trains are impossible to get in parts of europe because people are trying to transport them that way. >> if you have a nice fat tax return check, congratulations, but some experts are saying it's a sign that you are actually doing something wrong. you just gave the government a year long interest free loan. so how do you make sure you keep more of your money the next time around? joining us is patricia powell. founder of powell financial group. hi, there, patricia sha. >> i have talked to so many people that get thousands in the mail but the government has been borrowing it from you? >> the average refund is here. average return is $3,000. what people need to do you need to take control of their own money and put it in their own account.

easiest thing to do is go to your employer and change your with holdings but you have to take that money and transfer it every month out of your savings account so you have something at the end of the year. >> you actually advice opening up a separate account? >> absolutely. because you'll get 30 to $50 of interest but go pick it up if you left it on the floor. go pick it up. a lot of business owners make quarter tax payments. what would you advise them to do? >> you want to be careful and you want to make sure you don't overpay the federal government. so adjusting your w-4 you adjust your estimated. you don't want to overdue and you pay too little you can be subject to interest and

penalties. i got to tell you the that irs makes credit card companies look like santa claus when it comes down to interest payments. and you don't want to underpay the government because you don't want to end up owing a huge check. how do you strike the proper balance? >> if you don't feel comfortable doing it yourself and you don't have an accountant, you can go on the irs website, and they have a withholding calculator and you can run your numbers through. if the government had to pay us back interest for all those overpayments that we make every year, how much would the average person end up getting? >> $3,000. >> if they had to pay back interest, too? >> absolutely. if the government were paying you the interest they are going to charge you for under paying them that money, you would probably get like $1500 of

interest. now they will never pay you that but that is what they would charge you. >> let me ask you this... a lot of states but at least about six states have been late on sending people their state income tax refunds. anything we can do about that? >> that is where it's more important to make sure that you don't overpay the state government because getting an iou or getting online to wait for your money back is insane. so you just adjust your estimated and withholding. the states harbor is if you pay the state and federal government what you owe them last year and certainly for the federal government, you are safe. but if for most states, if you pay 80%, you are also safe. so if you want to back into the

safe harbor so you accidentally don't trigger a penalty or interest for yourself. patricia powell, thanks for the advice. it's your money that that the government is getting. >> gregg: one texas community is bringing back paddling and setting off a national debate. critics including parents and students speaking out against that disear procedure. >> it's going to cause the kids get mad and retaliate. >> if it was my child i don't want somebody else hitting my child. my idea, you call me. i'll come and spank them. >> that may not be the case. >> gregg: get this the head of the school board in the town of temple says it actually brought back the practice at the request of some parents. they asked for it.

since pad was brought back, behavior has improved dramatically, even though only one student has been paddled. maybe the mere threat. come. how would like to get a call, come to the office and give your kid a spanking. >> lawmakers are thinking about a federal ban on paddling. look, when you think about from legal standpoint, it's assault and battery, it's physical violence and parent and student could sue a teacher and administrator for doing that. >> okay. how about this. national debt skyrocketing and when it comes time to pay up, it's your money that pays for it all. does the government work for you or is it the other way around? we'll break it down next.

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>> gregg: two veterans accused of firing bombing their own headquarters. pennsylvania state police busting bottom of them. there they are. both men are 20 years old. they were taken into custody in new jersey. both men are members of the national guard. police say they started the fire in order to avoid taking a required drug test. the arson causing more than one

million dollars in damage and they say one had failed a drug test in march. two days after tax day. we're asking this. does the government work for you or you work for the government? with the nation's debt to exceed 20 trillion dollars in the next decade, many americans are wondering who is going to pay for it all. jim engle has more. >> they are spending trillions it doesn't have. leading many analysts that our deficits are unsustainable. >> the future of the economic might of this nation is at stake. we're spending $5 for every $3 you take in. you can't do that over a long period of time. >> president obama's budget plans would add $10 trillion to staggering debt of $20 trillion over ten years and some say we're heading for the cliff.

he appointed a debt commission that will report after the fall elections. >> i'm asking them to produce clear recommendations on how to cover the costs of all federal programs by 2015. >> when he says covering the costs of all federal programs, he is excluding interest on the debt which that year alone will cost $520 billion. even without counting that, it's hard to bring the rest of the buy in balance because so much spending is on auto pilot. >> almost three-quarters of federal spending is either on net interest, the military, social security, medicaid or medicare. if you look at each of those, it seems unlikely we'll cut those. >> one fourth would have to be cut to the bion, from highways to education and everything in between. had some would like to close the gap with tax increases on the wealthy but regularly on that alone would push it to

destructive ways for the economy. >> it's so damaging, it would be mindboggling. 92 and 86% to have that meet the objective of the deficit. >> even many democrats acknowledge that would be damaging so many concede it would have to be a mix that absolutely everything will have to be on table, including the most sacred federal programs. >> we can't say this is off the table and that is off the table. there will have to be changes to social security. we'll have to do tightening on medicare. >> some tax increases but voters won't accept them unless it's a grand bargain, one to make tightened spending so making sure that new revenues don't get squandered. >> if you want to follow your money and see how much of your

individual tax dollars pay for specific government programs, you can go to foxnews.com your money and check out our top calculator and vote on whether or not you want your money to be spent that way. that is terrific. what percentage would go to medicare or other programs. >> gregg: it's pretty astonishing. i went to the site a couple days ago. it's almost frightening. >> what is the biggest expenditure when you did yours? >> when i did mine? what did it go to -- i can't remember. >> we'll talk about it. >> i need to check it out. >> gregg: do you notice allergy season is here. it's a really bad one. seeing up to three times the volume of pollen that typically seen in springtime. what is to blame and how you can get some relief coming up next.

here is a at the headlines. space shuttle undocking from the international space station. heading back to earth. they conducting three spacewalks and did repair work while on their mission. >> officials call it the worst travel disruption the world has ever seen. plumes of ash from a volcano closing down airports and grounding thousands of flights for a third day in a row. and prosecutors in pakistan showing contacts between five detained americans and al-qaeda leader. the virginia men are accused of planning terror attacks in pakistan.

>> gregg: you know the symptoms, itching eyes, sneezing and coughing. if you happen to have allergies, this is one of the worst allergy seasons ever. apparently the late winter and warm springtime pushing all those trees and flowers into bloom simultaneously. >> all of that is bringing a more concentrated amount of pollen than usual. here to explain it is dr. mark siegle and a fox news contributor. we've had a late winter and wet spring zblals cold winter. what happened everything got delayed because it was so cold. then it got wet and everything woke up at the same time. the trees and grass, 95% respond to the grass. it's all happening right now. we don't know that means this will be one of the worst allergy seasons on record.

we'll have to look back on what happens. by the way, i want to know what people actually is. pollen is the male part of the flower. so men are always at fault. here we are again, it's our fault. >> gregg: it gets passed along to pollinate the female. >> by the way, it can get caught on your clothes or animals. it can get over everything and you carry with it. >> when you go inside, you are supposed to wash your hair and get the pollen off of you. i've talking to people that take prescription medication for this and even that is not helping. >> they also have side effects. 35 million allergy sufferers in the united states from ragweed and hay fever, one out of nine and it can get provoked by foods. i brought along some coffee here. some of the coffees can make it

worse. it's very hard to treat. this year we got an anti-histamine nose spray that everybody is raving about that is over-the-counter and prescription. there is over-the-counter eye drops that is anti-histamines. it makes people tired is the problem with them. and then we tend to under utilize allergy shots. they are phenomenal in europe. you do skin testing and they really help people and we need to do more allergy shots here. >> gregg: my daughter is suffering from it and talk her to specialist the other day. still, the body builds up an immunity to the pollens and you will suffer? >> what actually happens, our immune system gets excessively triggered, more dirt and more perfumes and we overuse

antibiotics at a young age. there is a lot of reasons this is happening. another reason that skin testing is good, it differentiates from one poll tone other. some people respond to grass and some people trees. you can get the skin test and the aler jicht can tell you what to do about it. >> some people never suffered allergies as an child but once they get older, they hit? >> that is happening more and that is because the environment and there is an overlap. >> what do you mean? >> like chemicals, perfumes and toxins and food alter just are on the rise and -- allergies and we're getting more and more pollen with global warming. more trees. >> gregg: they worry about asthma that can be life-threatening? >> by the way, i wanted to throw in a comment about that volcanic ash we're seeing. in europe, we're very worried

about all the asthma and allergy sufferers that may get glass and silicon if it comes down to ground level. >> gregg: we don't have to worry about that here. >> it's not going to come here. doctor, thanks so much. >> we're keeping an eye on the growing travel nightmare across the world. those of flights cancelled. tens of thousands of travelers who have been stranded across the globe. how much longer scientists are saying it could last.  [ male announcer ] prilosec otc traveled to fairbanks, alaska.

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more green, means mo green. [ male announcer ] get a healthy, green lawn today. call trugreen. go greener. >> hello, welcome to brand-new hour of america's news headquarters. topping the news, the eruption of a volcano in iceland. grounding president obama's plans to attend the funeral of the late polish president. jeelses are saying they're not sure when the volcano will quiet down. >> discovery heading back to earth after resupplying the international space station with supplies. one of the final flights in nasa's shuttle program expected to touchdown on monday. >> pope benedict heading to malta. several victims allegedly molested has asked to meet with him. he talked with reporters before

takeoff, but answered no questions. >> the powerful volcanic eruption throwing air travel world wide into complete disarray. flights into and out of europe now being canceled or delayed. with no signs that it will stop spewing grit and ash any time soon, the global travel troubles could just be the beginning. laura ingle is with us. >> it is a mess, heather. flight boards all around europe are lit up with the word, canceled, sinking the hopes of air travelers that they would be able to make it to work this week on a planned vacation, or anything else that requires air travel most through europe. you can see how the severe situation is from this image taken by nasa from space. the ash cloud that originated in iceland has drifted and is hanging over large portions of europe. we have new numbers for you this hour. 17,000 flights have been canceled out of about 22,000 flights normally scheduled. that's up from 16,000.

the international air transport association which representing 93% of air traffic estimates it's costing the global airline industry more than $200 million a day. there has been an enormous strain on air freight business as well. cargo flights carrying perishables, mail and medical supplies are being rerouted for ground transport where they can. euro controls safety agency reports 5,000 flights will take place in europe today. that is compared to the usual 22,000. stranded passengers who have not only had their flights canceled, have run out of money in some cases to put themselves up at hotels. >> they want the luggage. we don't want to pay hotels. they don't give us food or nothing. >> my flight was canceled this morning. i can't get back to where i need to. seven days to wait to try and

get home another way. >> they're getting creative. most taking a train if they can find one not sold out. some have been hiring taxis for a long haul service, including john cleese who paid for a trip. not everybody has that kind of cash. a lot of people just sitting around and waiting. >> wow. what a trip that was. thank you so much. >> another recall involving toyota. this time toyota recalling some 600,000 sienna mini vans over concerns with a spare tire carrier cable. they say the issue affects about, well, 1998 to 2010 vans. so more than a ten-year span. the problem could cause the spare tires to fall off, creating dangerous conditions for vehicles traveling behind. in the meantime, toyota says it is now confirmed a thaw in the

lexus gx465. the auto maker ordered dealerships to stop selling it and is now looking for a fix. so far toyota has not announced a recall. the pentagon is limiting information that it is releasing about the fort hood shoot to go lawmakers. robert gates says that the move is to avoid jeopardizing the suspect's prosecution and says the pentagon is not hiding anything. the senate homeland security committee is accusing the obama administration of stone walling its probe by failing to make officials available for interviews or to provide access to intelligence files. secretary gates says this prosecution of the suspect, major nidal malik hasan, is a primary importance to the defense department. he's charged with killing 13 people in the fort hood massacre last november. he could face the death penalty. >> gregg: the crew of discovery now home ward bound following a successful mission to the international space station. discovery's due to land on

monday morning. after that, three flights left before the shuttle program is retired. this week, a big one for nasa as the president also outlined his goals for the space agency's future. but his message has some lawmakers in texas deeply worried. the president never mentioned houston's johnson space center and now members of the texas delegation are vow to go fight for the space center. >> i don't want to walk away from what we have invested and try to turn it over to people who are going to start from scratch. that's not a sound proposal. >> the president can't really ignore texas. we won't let him. we talk too loud. >> gregg: the president nix add return to the moon and is encouraging more private companies to get into the space business. what does america think about that? the results of the latest rasmussen poll on that subject, a bit later on. >> texas now, police are searching for a man that they say shot one of their own. police say this man, 44-year-old

kenneth davis, first shot his girlfriend during an argument, then police say when they responded to a domestic disturbance report, he opened fire on an officer. this was the scene yesterday in round rock, texas. davis' family saying he is the kind of man who just may have snapped. davis is believed to be armed and dangerous. luckily the officer who was shot was wearing a bullet proof vest. the woman is in the hospital with a nonlife-threatening gunshot wound. >> gregg: as washington tries to revamp wall street, troubling new allegations made against one of the world's most powerful financial firms, the security and exchange commission accusing goldman sachs of defrauding investors. molly henneberg is live in washington with more. molly, what more can you tell us about what the government alleges goldman sachs did? >> hey, gregg. this is a civil fraud case and goldman sachs says the charges are, quote, completely unfounded in law and fact and will fight them. the sec says goldman sachs sold

sub prime mortgage securities to investors a couple of years ago as the housing market was collapsing, but didn't tell the buyers of those securities about a conflict of interest. specifically that one of the clients, hedge fund operator that was putting together the securities product, was also betting that the investments would fail and profited when they did, as did goldman sachs. that's according to the sec. gregg? >> gregg: and molly, president obama is pressing for financial reform legislation. where does that stand at the moment? >> financial reform bill has passed the house and the senate's version has made it out of the senate banking committee. still has to go to the full senate, though. president obama says the legislation will bring new transparency to financial dealings, put more government regulations on wall street businesses in order to prevent another economic meltdown. here is more. >> every day we don't act, the same system that led to bailouts remains in place with the exact same loopholes and the exact same liabilities.

if we don't change what led to the crisis, we will doom ourselves to repeat it. that's the truth. opposing reform will leave taxpayers on the hook if a crisis like this ever happens again. >> president obama wants to sign the legislation this year. gregg. >> gregg: the president and geithner says this is not endless taxpayer bailouts. republicans beg to differ. so are they going to negotiate something here? >> they did. the senate republicans didn't like several parts of the bill, but one in particular which taxes big financial firms in order to set up a $50 billion bailout reserve fund just in case the government needs to step in and liquidate a failing business in the future. republicans say that's going to lead to more and more bailouts and yesterday the obama administration agreed with republicans and told senate democrats to drop that provision. gregg. >> gregg: and one would assume they would do that. but we'll wait and see. >> we'll see. >> gregg: molly henneberg live in washington.

thank you. >> heather: department of the interior will not let border agents patrol a wild life preserve along the u.s. border with mexico. three members of congress are introducing a bill to give agents the power to patrol part of the land that is currently offlimits. congressman bishop, king and hastings are all arguing that the interior department is putting environmental concerns ahead of security concerns. joining me now for a fair and balanced debate, congressman steven lynch, democrat from massachusetts, and mccotter, a republican from michigan. congressman lynch, let me start with you. why is the department of the interior preventing border patrol agents from patrolling 40% of our border with mexico? >> well, i understand that the department of the interior has jurisdiction over some of these areas. they are wilderness preserves and refuges and they are limiting i guess the border patrol agents have to patrol either by foot or by horseback

in certain areas. but in my mind, we should be able to work together here to allow dhs and the border patrol to conduct that surveillance and patrolling. it shouldn't be one or the other. we should be able to protect our national security and our natural resources at the same time. >> heather: congressman mccotter, isn't the federal government putting the concerns of the environmentalists ahead of our own safety concerns? >> first i think you'll find a lot of bipartisan agreement as we heard from my colleague representative lynch. what we're seeing is more bureaucratic turf war that is, i believe, setting back national security. fundamentally, the protection of human life is the overafternooning goal of the united states government in terms of the defense. now, if you care about the natural resource, you also have to recognize that the criminal drug smugglers and others who have come across the borrowedder and killed american citizens are going to continue to despoil that natural resources there. so if you want to help protect

the resources and more importantly, protect american lives, you should allow for the border patrol to come down there. >> heather: you brought up a great example, the arizona rancher whose family was ranching on the land for nearly 100 years. it's believed that his killer came across through part of our area that is not patrolled by the border patrol and that there had been some towers that would help look out for people crossing the border. but those very tower high school been taken down in order to protect endangered species. congressman lynch, how do you explain something like that? >> well, i think you need balance. we need to have -- when you talk to the people who actually represent the border area, they want more resources out there. they want the fence is not consistent all the way across. i actually voted for the security fence for national security reasons. but it's a real hodgepodge. there are areas where the fence is just a picket fence type thing, there are posts. then there are other areas where

there is actually a physical barrier. so we need to sort of look at the border area there, do what we can to preserve the natural resources there, but also provide security to those families because that is the first role of government. >> heather: something has to be done. how confident are you, gentlemen, that congress will pass something like this? >> i think that -- >> heather: congressman mccotter action how confident are you that congress will pass this? >> we'll have to see what the leadership and the house wants to do with it. i think you're going to find broad consensus among the rank and file members on both sides of the aisle. we understand the number one goal of the united states government and homeland security is to protect ranchers, to protect americans and defend our territory. the balancing act is necessary, but only to this extent. the overy'all goal is protect human life and protect the natural resources will come secondary. >> heather: and congressman lynch?

>> yeah. i think mr. mccotter has it right. as easy, this seems to be more of a turf war between two agencies. look, we should be able to have the interior department and ken salazar and secretary napolitano work this out between those two agencies. we've got to be able to protect our natural resources and protect the border at the same time. there is no question about it. >> heather: it's a turf war, then i think americans will agree is definitely affecting our security here at home. gentlemen, thank you for joining us. mccotter from the state of michigan and congressman lynch from massachusetts. thanks and have a great weekend. >> you, too. >> gregg: we were talking about this before. have you ever wondered how the government is using your money, the money you pay into the government with every paycheck, especially when it comes to income taxes, who pays and why some people pay so very much?

chief washington correspondent jim angle reports on the two extremes of the tax code. >> about 67 million americans, almost half the nation's wage earners, will pay no income taxes at all this year. in part because the wealthier are paying a bigger and bigger share of total u.s. taxes. >> a little known secret is that since the bush tax cut, the number of taxes paid by the wealthy increased from 80% of all income taxes paid by the top 20% to 86%. >> by all sorts of measures, wealthier taxpayers are shoulderrerring more of the burden than ever before, sparing those with modest incomes. >> the top 5% of earners in this country earn about 37% of all the income. but pay about 60% of all the federal income taxes. the bottom 50% of earners earn about 12% of all the income, but pay about 3% of all the taxes. >> meaning the top 50% pay a record 97% of income taxes. wage earners below 50,000 in

income can easily escape income taxes with standard deductions and tax credits like those for children or the working poor. while that makes the tax system more progressive than's ever been, some see a risk. >> democratically dangerous to have a country where a majority can vote for policies that just tax the minority and that's the situation we're coming close to. >> as a matter of civic, folk thes ought to pay something or else they think government is free. >> liberal analysts note those who do not pay income taxes pay social security and medicare taxes, though they get something in return for that and they say all americans are concerned about deficit spending whether they pay income taxes or not. >> i don't think polling data supports the idea that these people say, gee, i'm in favor of run away spending because i don't have a higher income tax burden. >> it doesn't bother me that people don't pay income tax when they don't have much income. it bothers me more that the richest 400 americans in this

country, from 2001 to 2007, more than doubled their real income, but their tax rate we want down. >> oddly enough, in one poll, 69% of americans chose 20% as the maximum tax rate anyone should pay. but the maximum today is already 35% and under president obama's plans, it goes up to almost 40%. so the support for higher taxes appears to be fairly low, even among those who don't pay any. in washington, jim angle, fox news. >> and we're helping to keep an eye on your money at fox news.com to figure out how much of your tax dollars are being spent on government programs, use the foxnews tax calculator. fox news.com/your money. you were asking me what i found and i went back to it. the biggest percentage for me was the stimulus bill. >> i went to that one, too. >> gregg: it was astonishing how much. >> heather: you can click on

this and find out how much 6 your money goes to the nasa program, you can find out how much is going to government waste fraud and abuse. you name it. interesting stuff. check it out. a laptop spying scandal at a pennsylvania high school could be much bigger than originally thought. new accusations that the school district didn't just snap a few secret pictures, but thousands of them. what a lawyer says was captured on those photos is sparking new outrage. that's next.

>> heather: a quick check of the headlines. two homicide bombers attacking refugees as they lined up for food and other relief supplies. 41 people are now dead. toyota announcing another recall, this time for its 1998 to 2010 sienna mini van. they're saying a cable that holds the spare tire could snap, which would cause the tire to fall into the road and could cause injury. next stop, planet earth, discovery is now on its way home after a trip to the international space station. the shuttle is due to land on monday. >> gregg: angry parents now looking to make a school district pay, suing it for spying on students using computers it provided. now more from our philadelphia affiliate has that story. >> this is the picture that started it all. a sleeping blake robins captured by the web cam on his

school-issued laptop. a web cam that was remotely activated by a school district official. >> i was so appalled and i was shocked that a school district was using my son as a pawn and their little game. >> they're speaking with fox 29 after filing a motion this week which alleges the lower merion school district snapped more than 400 pictures or screen shots of blake robins during a 15-day period last fall. the robins' legal team in this week's court filing saying the district went further, snapping more than 1,000 pictures or screen shots of students in all. >> we always suspected from the very beginning that there were more. >> this is carol, the lower merion school district technology coordinator at a deposition last friday. she invoked her fifth amendment rights. >> the council has been cooperating. >> we don't know why she hasn't been cooperating.

her lawyer says she will cooperate with the f.b.i. investigation, but not the robins investigation. >> that is a desperate attorney trying to resurrect a very bad case. >> today lower merion school board president posted this statement on the school's web site where he admits there are a substantial amount of web cam photos, but doesn't say how many. he also confirms that the district is working with the courts to come up with a process to contact the families of students appearing in those web picks. >> you would think the school district could know better than that. this stems from the school claiming the laptops were missing so they wanted to snap pictures of the students. >> gregg: when you're talking about more than 1,000 pictures taken, i don't know how you justify it.

generally you don't hide behind the fifth unless you have something to hide. >> heather: probably the advice of lawyers. we have a follow-up to a police beating that was caught on dash cam. first we have to warn you that the video you're about to see is graphic. the family of a man you can see being pummeled by an illinois officer is now speaking out, saying they don't feel safe in streamwood anymore and considering moving. ron bell and a friend were stopped last month for squealing their tires. the officer repeatedly hit bell on the head, neck and on the shoulders. bell's brother says he came out of his home to find his brother and the officer. take a listen here. >> asked him again what, do you want? i don't think we understand what you want. he said, i want him down. i said, he is down. i said, what do you want? he said, i want him all the way down. i said, you didn't specify. >> he's very scared and nervous. he doesn't understand how this could happen to him without doing anything. >> heather: bell suffered a concussion and had to get stitches. the officer is now facing

charges and is on paid administrative leave. >> gregg: after suffering through a down economy and plummeting stock market, many americans would love to start building their personal wealth all over again. well, money magazine has some important tips for you to do just that and they're going to share them with us coming up.

>> gregg: welcome back. bottom of the hour. time for top of the news. pope benedict the 16th is in malta, the first foreign trip since the sex abuse scandal story broke. saying the church is, quote, wounded. >> heather: a memorial service in warsaw for the president of president poeland and other victims of the plane crash. people were gather to go remember the lives lost. the state funeral for the president is set for tomorrow. >> gregg: a pair of homicide bombers attacking a refugee camp in pakistan, killing at least 40 people, wounding 60 more. police say the bombers striking people waiting in a food line. pakistan is seeing bombing every day over the last 18 months. >> gregg: let's go to los angeles because that is where

california's democratic convention is now underway and all eyes are on the top job. the job that arnold schwarzenegger currently holds, the job of governor. term limits prevent him from running again. a contender, state attorney general jerry brown, likely to face, meg whitman. joining me live from the l.a. convention center is casey siegle. >> hi. sorry if i'm shouting, but there is a giant helicopter roaring overhead. live television for you. the state has been crippled by the recession, as you know, and that has a lot of californians concerned about a number of issues, everything from higher taxes to the environment, making this arguably one of the most important governor races in quite some time. with the california primaries around the corner, everyone is talking about the likely gubernatorial race, pitting huge sums of money against seemingly

unbeatable name recognition. but for all his notoriety, jerry brown could use a shot in the arm. >> we need someone with insider's knowledge. >> from the day of his on-line launch, his campaign has been extremely low key. a recent poll shows former ebay ceo meg whitman with 44% of the vote over brown's 41%. >> why we can't trust him. >> whitman spent $40 million of her own money on her campaign and it's having an impact on voters. >> in a vacuum with a lot of money against not a lot of opposition, you can and she has created an impact. >> brown is also facing a challenge from the left. move on.organize co-founder says governor moonbeam isn't progressive enough. that campaign has gotten little traction so far. right now jerry brown raised

$14 million for his campaign. gop front runner, white mir has spent a lot of her own money. because of recent supreme court rulings that uncapped, the soft money used for campaigns, deep pocketed allies may be showing up to level the playing field a little bit for jerry brown. we'll have to wait and see. >> gregg: what's arnold schwarzenegger going to do next? terminator 23? does he have any plans? >> i don't know. i don't know if he will go back to acting. no one has really talked to the governor about that. right now we're still focusing on shoring up a budget shortfall and trying to deal with the economy and arnold schwarzenegger hasn't publicly come out, that i'm aware of, saying what his plans will be next. he's already reached his limits. i don't think it will be hard for him to find something to do, though. >> gregg: yeah. he's a busy guy at all times. thanks very much.

casey stegall. >> heather: in florida a big endorsement, republican senate primary, former massachusetts governor mitt romney coming out in favor of candidate marco rubio. he has been racking up endorsements from 2008 republican presidential candidates, former arkansas governor mike huckabee and rudy guiliani are also in his corner. some insiders see this as a case of political payback against rubio's challenger, governor charlie crist. all three former presidential candidates had sought crist's endorsement in 2008, but he gave it to the eventual gop nominee, senator john mccain. >> gregg: danny glover busted. maryland police arresting him and 11 others during a labor union protest. police saying that glover and others stepped past a yellow police tape and asked to step back three times when they refused, well, officers hauled them off to a nearby police facility. cops issued them citations

fortress passing and then let them go. the service employees international union, seiu, saying it was protesting what it calls the company's unfair and illegal treatment of workers. >> heather: a volcanic eruption in iceland still throwing air travel for a major loop world wide. ash from the eruption could severely damage jet engines, so flights all over europe and the rest of the world are actually being canceled and still delayed. aviation experts are calling this the worst travel disruption the world has ever seen. mark white from our sister network, sky news, has the story from london's heathrow airport. >> it is quite an incredible sight here at the world's busiest international airport because heathrow, like others around the u.k., has been at a virtual stand still for three days. around the air field, the remaining british airways, bmi, virgin atlantic and aircraft from many other airlines just

lying idle. they haven't gone anywhere since thursday and it doesn't look like they'll be going anywhere any time soon because british airways, along with a number of other airlines, have decided that no matter what the national air traffic service says with regard to the track of this ash plume, they won't be flying any services on sunday. it will be monday at the earlier before they decide whether it's safe to resume their services. it is costing the aviation industry an absolute fortune. in the u.k. alone, some 200 million pounds a day is being lost. they need this crisis to be over with, but there is no sign that the eruptions from this volcano are about to die down any time soon. >> heather: that was mark white from our sister network, sky news. you might have seen this on america's news room yesterday. we just couldn't resist showing it to you again. as you can imagine, it's difficult to travel anywhere across europe right now. there are thousands of flights canceled, over six continents and it's no surprise that it

leads to a lot of frustrated flyers. flyers are always upset about something or another anywayful and then this. this from our colleagues at sky news. they accidentally found one of these flyers. take a listen. >> leaving this time of the morning. >> heather: oh, boy. that's one of the casualties of being a reporter in the field. doesn't it look like it should be something on, i don't know, the colbert report or something like that. >> gregg: property, we like iceland. many americans are hoping to get back on a stronger financial footing and now parts of the economy seem to be getting back on track, this could be the perfect time to act. in its latest issue, money magazine has some tips for improving your finances and amanda with money magazine joins us now. hey, here it is. front page. it's a really interesting read.

i want to run through a few of your favorites. number one, act as if you're already job hunting. what do you mean? >> so many americans are still worried about losing their jobs. so we say, instead of sitting around and waiting for it to happen, get out there and expand your network now. there was a recent poll that found 73% of workers who earned more than six figures, they got that job through a personal contact and it seems like it's a lot easier and less awkward to network if you do it while you still have your current job, so you're not sitting this thinking, can this person get me a job. >> gregg: another one is retire debt before you retire. good idea if you can do it. >> we actually asked some leading experts in the field for their thoughts. this came from the well-known author and personal finance columnist, jane bryant quinn. she said that there are so many seniors who are going into retirement with debt today that bankruptcy is growing more common for people in their 70s and 80s. so if you can, get that mortgage

paid off before you retire. that's some good old old-fashioned advice. >> gregg: get in touch with a better reality. where you stand depends on where you sit on that one. >> americans right now tend to think that the economy is growing worse, even though the general consensus among economists is that the recession actually ended. that's because we tend to believe that whatever sort of has happened recently, that that will continue into the near future. so we just say, instead of sitting around and worrying about it, do something to calm your anxiety. get your sort of back up plan in place, if that's having six months worth of living expenses in an emergency fund. >> gregg: another recommendation is put down the mouse and your remote. what do you mean? >> you know, when the stock market has been on a tear this past year, it probably seemed harmless to monitor your retirement accounts, maybe once a week or so. but the problem is that when you're watching the constant ups

and downs of the market, that actually makes you fearful that you are going to lose money and that can lead you to make some poor investment choices. simply monitor how often you look at those accounts. you really only need to do a quarterly checkup and then every year, do an annual rebalance. that's all you need. throw out the passwords if that's what it takes. >> gregg: you know, ours now is such an intertwined global economy these days, this next tip seems to resonate. look for opportunities around the globe. >> exactly. not so long ago, it may have made sense to invest in u.s. companies, but now with the markets and the economies abroad growing at a faster rate, we would recommend of all your holdings in stocks, we would say to put about half of those in international equities. >> gregg: and maybe a growth fund of sorts as opposed to single stocks so you're not as in great a risk. >> of course.

look for emerging economy, like china, india. that's always a good idea. >> gregg: latin america as well. expect retirements to last longer? >> this is simply because it's good news we're living longer, but we would just recommend, you have a great shot of living into your 80s, even 100 today. so have that retirement plan go well into your 90s and for a lot of people that, will actually mean sort of lowering that retirement withdrawal that you do every year. there is conventional wisdom that it's safe to pull out 4%. but that conventional wisdom is actually based on a shorter retirement span. so we would say, take out a little bit less than 4% from your nest egg every year. >> gregg: ratchet down your expectations, like what? >> this is just along the lines in the '80s and 90s, assuming a 7% annual return for your retirement planning, that was considered conservative. but given the current market conditions, we would actually recommend planning for about a 6.5% return from stocks and 4%

from bonds. >> gregg: all right. money magazine, 31 ways to improve your finances. amanda, thanks for being with us. by the way, check out page 38, how to nab a bigger raise. >> in a down economy, yes. >> gregg: just saying. page 38. check it out. >> heather: good idea. everybody could use that. he has run his own hair salon for nearly 20 years, but a change in the law could land him behind bars or even worse, death? all this just for cut agawam's hair. we'll telethon believable story next.

>> gregg: crews are working on a temporary roadway after a massive sink hole swallowed up two parked cars, richmond, california, the northern part of the state. this gaping hole blocks the only way in or out of several streets in the neighborhood. until the temporary road is built, residents can get around by walking, i guess, but there is no way to drive a car around that thing. crews are also working to get the two cars out without damaging water and sewer pipes exposed when the sink hole suddenly opened up. >> heather: wouldn't that be terrifying?

overseas, new violence breaking out in the west bank between palestinian protesters and israeli security forces. the palestinians attempting to march to a jewish settlement when they were blocked by guards. the protesters throwing stones. the guards responding with tear gas. in the meantime, for one man living and running a hair salon in the gaza strip, life is about to change. new laws put down by hamas could land him in legal trouble. >> in a society where islamic tradition forbids most women from showing their hair to men who are not related, life has become difficult for hair stylist here. for 19 years, he's run this hair salon in the gaza strip. new orders from hamas who control the area say men who cut or style women's hair will face legal consequences. fox news has learned bombs were placed outside of the salon a few weeks ago by extremists. >> i am worried. this is my work. this is my life.

i eat from this job. >> a curtain separates clients who prefer female hair dressers. none would allow to us film them. >> if you want, i will make your hair a new sight. >> why not? >> new quality. all of this from egypt. >> hair supplies come from tunnels via egypt, since there is a boycott of gaza. this hire dare is 30 years old. he offered to color my hair, but i passed. >> you will like your new hair. >> i do. he says this is the cheapest hair blowout of anywhere in the world. eight dollars. hamas officials refused to comment for this story. for now, he says he will continue to work in his salon. in gaza, fox news. >> heather: you know who they need there? adam sandler, don't mess with

zohan. they need him on that job. >> gregg: all right. that's a good one. tax day tea parties drawing thousands from across the united states. regular folks gathering together to protest taxes and government spending. is the movement beginning to catch on with more americans? what the latest polls are saying, coming up next.

>> gregg: terror in northwestern pakistan, two homicide bombers attacking refugees as they lined up for food and other relief supplies. 41 now dead.

toyota announcing yet another recall. this time for its 1998 through 2010 sienna mini van. the auto maker saying a cable that holds the spare tire could snap, causing the tire to fall onto the roadway. and next stop, planet earth. the space shuttle discovery on its way home after a trip to the international space station. the shuttle due to land on monday. >> heather: the tea party movement is beginning to broaden its base of support. a recent rasmussen poll shows 24% of voters now link themselves to the tea party movement in some sort of way. that is an 8 point increase over the last month alone. >> gregg: another 10% there say they are not a part of the movement, but they have close friends or family members who are. joining us now, independent pollster, scott rasmussen. >> always good to see you. >> gregg: for a movement that started a year ago, i mean, those numbers strike me as pretty impresssive. what do you make?

>> i think they certainly are impresssive. 24% now say they're part of the tea party movement. only 23% of voters nationwide consider themselves politically liberal. significant numbers here. by the way, big identifying factor among the tea party, 96% say we are overtaxed as a nation. most liberals say no, we're not. >> heather: what do you attribute that big jump to? because of the health care reform bill? >> i think the health care reform bill added to the jump. it has been capturing the frustration the voters had all throughout the past year and right now, 58% of voters say it's time to repeal the health care legislation and people just are tired of seeing these bills that most americans oppose become law anyhow. >> gregg: nancy pelosi was the driving force behind health care reform bill, at least on capitol hill. and i suspect that the anger would increase her unfavorability and decrease her favorability, but you found the

opposite. >> that's right the nancy pelosi now enjoying her best rating since shortly after her honey moon when she became the first woman speaker. what we're seeing, 43% now with favorable opinion. why is that happening? because democrats are far more enthusiastic. 78% of democrats now have a favorable opinion of her. we've seen the same thing. democrats more enthusiastic about president obama. democrats more likely to say the country is headed in the right direction. those numbers aren't rubbing off on republicans and on affiliate voters. >> heather: let's talk about the 2012 presidential election. ron paul is the most favored candidate to take on president obama? >> first of all, that's an inaccurate statement. ron paul is the only candidate we matched in this latest round against president obama. what we did find is a tossup, obama 42, ron paul, 41%. i think this tells us a lot about the frustration that many voters are feeling with president obama and the economy. but the reality is, until the

2010 elections are behind us and we see how the president reacts, we won't have any kind of a good read on where his numbers will be in 2012. >> gregg: democrats have been accusing the gop of being the party of no, obstructionists and so forth. we heard sarah palin in a speech say nothing wrong with being the party of no when the democrats are engaging in what she characterized as bad behavior. what did you find? >> first of all, 75% of americans do recognize the party of no refers to the republican party. 39% of voters say it's good to be the party of no. 34% say it's not. what this means is that if you're in a republican leaning district or a district a lot of independent voters, it's okay to be the party of no. won't work so well in a heavy democratic district. but think about this, with 75% of americans knowing that the republican party is the party of no, the gop still has a 9 point lead on the generic congressional ballot. >> heather: those likely voters you spoke with are warming up to

the idea of cutting some government programs, including education. what do you have to say about that? >> most people still oppose the idea of education cuts. the numbers are getting a little stronger than they were over the past year. when you talk about spending, the american people are willing to make tougher cuts than politicians are. but they're not being given the basic tools, the basic information. a majority of federal spending is in just three areas. national defense, social security, and medicare. most voters aren't aware of that because most politicians don't want to talk about it. >> gregg: with all the belt tightening that probably needs to be undertaken, what about the space program that was to topical this week? >> most people looking back saying the shuttle was worth it over the long haul, but now with the state of the economy and tax burden, about half are saying, we should be cutting back a little bit. we also asked who should be paying for this declaration? it's a tossup of whether the federal government or private sector. this is one more indication

americans tend to believe that the private sector can do a lot of activities that are being handled by the federal government at this point. >> gregg: scott rasmussen, always great to see you. >> good to see you. >> gregg: that's going to do it for us. rick and juliette standing by with the latest on the massive volcano creating a huge swath of ash. >> have a great weekend.